| Schedule of fair value hierarchy |
The following table presents the fair value hierarchy as of June 30, 2025.
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|
June 30, 2025 |
|
|
|
|
|
($ in thousands) |
|
|
Level 1 |
|
|
|
Level 2 |
|
|
|
Level 3 |
|
|
|
Total |
|
First Lien Loans |
|
$ |
|
— |
|
|
$ |
|
51,779 |
|
|
$ |
|
2,283,935 |
|
|
$ |
|
2,335,714 |
|
Second Lien Loans |
|
|
|
— |
|
|
|
|
67,720 |
|
|
|
|
82,079 |
|
|
|
|
149,799 |
|
Unsecured Notes |
|
|
|
— |
|
|
|
|
8,502 |
|
|
|
|
103,973 |
|
|
|
|
112,475 |
|
Preferred Equity |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
38,583 |
|
|
|
|
38,583 |
|
Common Equity & Warrants |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
11,931 |
|
|
|
|
11,931 |
|
Subtotal |
|
$ |
|
— |
|
|
$ |
|
128,001 |
|
|
$ |
|
2,520,501 |
|
|
$ |
|
2,648,502 |
|
Investments Measured at NAV |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
5,164 |
|
Total |
|
$ |
|
— |
|
|
$ |
|
128,001 |
|
|
$ |
|
2,520,501 |
|
|
$ |
|
2,653,666 |
|
The following table presents the fair value hierarchy as of December 31, 2024.
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December 31, 2024 |
|
($ in thousands) |
|
|
Level 1 |
|
|
|
Level 2 |
|
|
|
Level 3 |
|
|
|
Total |
|
First Lien Loans |
|
$ |
|
— |
|
|
$ |
|
33,634 |
|
|
$ |
|
2,175,758 |
|
|
$ |
|
2,209,392 |
|
Second Lien Loans |
|
|
|
— |
|
|
|
|
71,766 |
|
|
|
|
79,596 |
|
|
|
|
151,362 |
|
Unsecured Notes |
|
|
|
— |
|
|
|
|
3,435 |
|
|
|
|
87,940 |
|
|
|
|
91,375 |
|
Preferred Equity |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
36,226 |
|
|
|
|
36,226 |
|
Common Equity & Warrants |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
11,696 |
|
|
|
|
11,696 |
|
Subtotal |
|
$ |
|
— |
|
|
$ |
|
108,835 |
|
|
$ |
|
2,391,216 |
|
|
$ |
|
2,500,051 |
|
Investments Measured at NAV |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
4,191 |
|
Total |
|
$ |
|
— |
|
|
$ |
|
108,835 |
|
|
$ |
|
2,391,216 |
|
|
$ |
|
2,504,242 |
|
|
| Schedule of changes in the fair value of investments for which Level 3 inputs were used to determine the fair value |
The following tables present changes in the fair value of investments for which Level 3 inputs were used to determine the fair value as of and for the three and six months ended June 30, 2025 and 2024:
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Three Months Ended June 30, 2025 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,263,619 |
|
|
$ |
80,945 |
|
|
$ |
101,708 |
|
|
$ |
37,257 |
|
|
$ |
11,800 |
|
|
$ |
2,495,329 |
|
Purchases of investments, net |
|
173,248 |
|
|
|
281 |
|
|
|
2,048 |
|
|
|
1,251 |
|
|
|
- |
|
|
|
176,828 |
|
Proceeds from sales and principal payments, net |
|
(157,034 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(157,034 |
) |
Realized gain (loss) on investments |
|
1,923 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,923 |
|
Net change in unrealized appreciation/(depreciation) |
|
371 |
|
|
|
829 |
|
|
|
162 |
|
|
|
56 |
|
|
|
131 |
|
|
|
1,549 |
|
Net accretion of discount and amortization of investments |
|
1,808 |
|
|
|
24 |
|
|
|
55 |
|
|
|
19 |
|
|
|
- |
|
|
|
1,906 |
|
Transfers in (out) of Level 3 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Ending balance |
$ |
2,283,935 |
|
|
$ |
82,079 |
|
|
$ |
103,973 |
|
|
$ |
38,583 |
|
|
$ |
11,931 |
|
|
$ |
2,520,501 |
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|
Three Months Ended June 30, 2024 |
|
($ in thousands) |
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
1,787,311 |
|
|
$ |
201,896 |
|
|
$ |
49,347 |
|
|
$ |
28,951 |
|
|
$ |
9,611 |
|
|
$ |
2,077,116 |
|
Purchases of investments, net |
|
296,975 |
|
|
|
29,973 |
|
|
|
9,741 |
|
|
|
4,639 |
|
|
|
— |
|
|
|
341,328 |
|
Proceeds from sales and principal payments, net |
|
(125,846 |
) |
|
|
(34,918 |
) |
|
|
(19,691 |
) |
|
|
— |
|
|
|
— |
|
|
|
(180,455 |
) |
Realized gain (loss) on investments |
|
2,290 |
|
|
|
(835 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,455 |
|
Net change in unrealized appreciation/(depreciation) |
|
(2,120 |
) |
|
|
2,281 |
|
|
|
(792 |
) |
|
|
74 |
|
|
|
1,064 |
|
|
|
507 |
|
Net accretion of discount and amortization of investments |
|
2,669 |
|
|
|
60 |
|
|
|
52 |
|
|
|
21 |
|
|
|
— |
|
|
|
2,802 |
|
Transfers in (out) of Level 3 |
|
— |
|
|
|
(11,863 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,863 |
) |
Ending balance |
$ |
1,961,279 |
|
|
$ |
186,594 |
|
|
$ |
38,657 |
|
|
$ |
33,685 |
|
|
$ |
10,675 |
|
|
$ |
2,230,890 |
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|
Six Months Ended June 30, 2025 |
|
|
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
2,175,756 |
|
|
$ |
79,596 |
|
|
$ |
87,941 |
|
|
$ |
36,227 |
|
|
$ |
11,696 |
|
|
$ |
2,391,216 |
|
Purchases of investments, net |
|
339,411 |
|
|
|
1,960 |
|
|
|
15,744 |
|
|
|
2,238 |
|
|
|
13 |
|
|
|
359,366 |
|
Proceeds from sales and principal payments, net |
|
(239,793 |
) |
|
|
(4 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(239,797 |
) |
Realized gain (loss) on investments |
|
2,547 |
|
|
|
- |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
2,548 |
|
Net change in unrealized appreciation/(depreciation) |
|
871 |
|
|
|
466 |
|
|
|
170 |
|
|
|
75 |
|
|
|
222 |
|
|
|
1,804 |
|
Net accretion of discount and amortization of investments |
|
5,143 |
|
|
|
61 |
|
|
|
116 |
|
|
|
44 |
|
|
|
- |
|
|
|
5,364 |
|
Transfers in (out) of Level 3 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Ending balance |
$ |
2,283,935 |
|
|
$ |
82,079 |
|
|
$ |
103,973 |
|
|
$ |
38,583 |
|
|
$ |
11,931 |
|
|
$ |
2,520,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
First Lien Loans |
|
|
Second Lien Loans |
|
|
Unsecured Note |
|
|
Preferred Equity |
|
|
Common Equity & Warrants |
|
|
Total Investments |
|
Fair value, beginning of period |
$ |
1,723,677 |
|
|
$ |
151,404 |
|
|
$ |
48,333 |
|
|
$ |
27,540 |
|
|
$ |
10,593 |
|
|
$ |
1,961,547 |
|
Purchases of investments, net |
|
484,606 |
|
|
|
98,330 |
|
|
|
10,186 |
|
|
|
5,504 |
|
|
|
- |
|
|
|
598,626 |
|
Proceeds from sales and principal payments, net |
|
(258,139 |
) |
|
|
(53,801 |
) |
|
|
(19,691 |
) |
|
|
- |
|
|
|
- |
|
|
|
(331,631 |
) |
Realized gain (loss) on investments |
|
4,260 |
|
|
|
(812 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,448 |
|
Net change in unrealized appreciation/(depreciation) |
|
3,135 |
|
|
|
3,173 |
|
|
|
(268 |
) |
|
|
601 |
|
|
|
82 |
|
|
|
6,723 |
|
Net accretion of discount and amortization of investments |
|
3,740 |
|
|
|
162 |
|
|
|
97 |
|
|
|
40 |
|
|
|
- |
|
|
|
4,039 |
|
Transfers in (out) of Level 3 |
|
- |
|
|
|
(11,862 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(11,862 |
) |
Ending balance |
$ |
1,961,279 |
|
|
$ |
186,594 |
|
|
$ |
38,657 |
|
|
$ |
33,685 |
|
|
$ |
10,675 |
|
|
$ |
2,230,890 |
|
|
| Schedule of significant unobservable inputs |
The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of June 30, 2025. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Adviser’s determination of fair value.
|
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|
($ in thousands) |
|
June 30, 2025 |
Investments |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (weighted average) |
First Lien Loans |
|
$ |
1,933,105 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.3% - 14.1% (9.6%) |
|
First Lien Loans |
|
|
329,725 |
|
|
Market Transaction |
|
Market Transaction |
|
98.5% - 100.0% (99.2%) |
|
First Lien Loans |
|
|
21,105 |
|
|
Recovery Analysis |
|
Recovery Rate |
|
5.3x-5.3x (5.3x) |
|
Second Lien Loan |
|
|
82,079 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.6% - 19.8% (12.6%) |
|
Unsecured Notes |
|
|
103,369 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
7.0% - 15.5% (11.4%) |
|
Unsecured Notes |
|
|
604 |
|
|
Market Transaction |
|
Market Transaction |
|
$20,939.7-$20,939.7($20,939.7) |
|
Preferred Equity |
|
|
35,441 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
13.1% - 15.0% (14.3%) |
|
Preferred Equity |
|
|
3,142 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
19.5x |
|
Common Equity & Warrants |
|
|
11,931 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
7.0x – 22.5x (17.5x) |
|
Total |
|
$ |
2,520,501 |
|
|
|
|
|
|
|
|
The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2024. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Adviser’s determination of fair value.
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
December 31, 2024 |
Investments |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Input |
|
Range (weighted average) |
First Lien Loans |
|
$ |
1,973,337 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.4% - 17.5% (10.1%) |
|
First Lien Loans |
|
|
181,212 |
|
|
Market Transaction |
|
Market Transaction |
|
98.5% - 99.5% (99.0%) |
|
First Lien Loans |
|
|
21,207 |
|
|
Recovery Analysis |
|
Recovery Rate |
|
6.5x |
|
Second Lien Loan |
|
|
64,671 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
9.0% - 21.2% (14.1%) |
|
Second Lien Loan |
|
|
14,925 |
|
|
Market Transaction |
|
Market Transaction |
|
99.5% |
|
Unsecured Notes |
|
|
53,726 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
8.0% - 16.1% (12.7%) |
|
Unsecured Notes |
|
|
34,215 |
|
|
Market Transaction |
|
Market Transaction |
|
98.0% - 100.0% (98.9%) |
|
Preferred Equity |
|
|
33,086 |
|
|
Discounted Cash Flow |
|
Discount Rate |
|
13.2% - 15.0% (14.4%) |
|
Preferred Equity |
|
|
3,140 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
20.5x |
|
Common Equity & Warrants |
|
|
11,696 |
|
|
Enterprise Value Analysis |
|
EBITDA Multiple |
|
6.5x – 25.0x (18.3x) |
|
Total |
|
$ |
2,391,216 |
|
|
|
|
|
|
|
|
|